Intel shares rise after report says Qualcomm has approached Intel about acquisition | Wilnesh News

Qualcomm Get closer Intel Regarding the acquisitions in recent days, the Wall Street Journal Friday reportciting people familiar with the matter.

Intel shares rose 8% after the report was released.

If the deal goes through, it would be one of the largest technology mergers ever. Intel’s market capitalization is approximately $96 billion.

This would bring an end to Intel’s dire predicament. The company’s stock price suffered its biggest one-day drop in more than 50 years in August after the company reported disappointing earnings. Intel shares are set to fall 53% in 2024 as investors cast doubt on its expensive chip manufacturing and design plans.

Qualcomm and Intel compete in multiple markets, including PC and laptop chips. However, unlike Intel, Qualcomm does not produce its own chips but relies on companies such as TSMC and Samsung for production.

On Monday, following a board meeting to discuss strategy, Intel Chief Executive Patrick Gelsinger sent a memo to employees reaffirming the company’s commitment to investing heavily in its foundry business, a project that could cost $1,000 over the next five years. billion dollars. It also said it was weighing outside investment.

Intel also missed out on the artificial intelligence boom that captured the attention of the tech industry. Analysts say most advanced artificial intelligence programs, such as ChatGPT, run on Nvidia graphics processors, rather than Intel CPUs, and Nvidia accounts for more than 80% of the fast-growing market.

Qualcomm’s revenue is lower than Intel’s, with fiscal 2023 sales of $35.8 billion compared to Intel’s $54.2 billion.

Qualcomm representatives did not immediately respond to a request for comment. Intel declined to comment.

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